Navajo Nation seeks public input to streamline payment processes

By Donovan Quintero
Navajo Times

WINDOW ROCK – The Navajo Nation is taking steps to improve the efficiency and timeliness of its payment processes and is asking the public for feedback. The controller’s office has launched a survey to gauge the experiences of vendors, contractors, and community members interacting with the Nation’s financial system.

Navajo Nation Controller Sean McCabe emphasized that the goal is to establish a baseline understanding of the public’s experiences, which will help shape future improvements.

“We’re moving to streamline processes and amend policies,” McCabe said. “This survey is designed to give us an honest look at how people perceive the services of the Office of the Controller.”

New payment methods, procedural adjustments

Acknowledging that initial feedback may be critical, McCabe stressed the importance of using the responses to measure progress over time.

The Navajo Nation has already taken steps to reform its financial system through amendments to procurement rules. The updates passed under Resolution BFMY-07-23 introduce new payment methods and procedural adjustments designed to eliminate delays, simplify transactions, and enhance reliability for government agencies and vendors.

One key change is the introduction of micro-purchases, allowing government offices to make purchases of up to $10,000 without going through the competitive bidding process. Previously, all purchases had to follow a structured approval process, regardless of cost, often resulting in delays. The new rules allow these small transactions to be completed using purchase cards (P-cards), significantly reducing paperwork and payment wait times.

Another major update expands the use of P-cards. Under the previous system, these cards could only be used for goods, meaning service providers had to wait for standard invoice processing, which often caused significant delays. The new amendments allow P-cards for service-related payments, ensuring faster compensation for small businesses and independent contractors.

Vendor payments

The revised procurement rules also establish more apparent timelines for vendor payments. While the previous system required multiple approval steps, often resulting in unpredictable delays, the updated guidelines outline structured payment schedules. Depending on contract terms, vendors can now expect payments within 30 to 60 days.

Payments will be issued in stages as work is completed for milestone-based projects. While some costs may still be withheld until final approval, adjustments have been made to minimize unnecessary delays.

A new escalation process for late payments has been introduced to improve accountability further. Previously, vendors had little recourse if payments were delayed beyond agreed-upon terms. Now, vendors can report payment issues to a designated review board, which will investigate and resolve concerns. In some cases, agencies responsible for late payments may face penalties, providing an incentive to process transactions on time.

Additionally, all payments must now go through a standardized tracking system, ensuring transparency and preventing unauthorized transactions. Auditors will have direct access to payment records, creating an additional layer of accountability.
The new regulations also address long-standing issues with international procurement. Under previous rules, payments to international vendors required extensive verification, often causing delays. The amendments introduce a streamlined process for handling international transactions, including standardized guidelines for wire transfers and letters of credit. These changes make doing business with suppliers outside the Navajo Nation easier while maintaining compliance with financial regulations.

Collaborative effort

The updates to procurement policies were developed through a collaborative effort between the controller’s office, the management and budget office, and the Department of Justice. By working together, these departments identified challenges and implemented solutions to create a more modern and efficient financial system.

McCabe remains committed to tracking progress and measuring the impact of these changes. With the survey, he said his office intends to use it to improve the processes even more.

“I know it’s going to be ugly,” he said. “But I want to be able to show where we started. A year from now, we can take the survey again and see if we’ve improved or not.”

The survey includes questions evaluating public experiences with payment processes, including the time it takes to receive funds.

“How long does it take you to get paid? We want to hear it,” McCabe said. “We want to show that payments used to take three years, then three months, then three weeks, then three days. We want to demonstrate real progress.”

The Navajo Nation is also preparing to implement a new accounting system in October, which McCabe believes will be crucial in accelerating payment processes – especially for funds from the American Rescue Plan Act.

“We’re looking at going live with the new accounting system in October, just in time for the new fiscal year,” McCabe said.

The Navajo Nation is taking proactive steps to modernize its financial operations by gathering public feedback and leveraging technology. These reforms aim to create a more transparent, efficient, and responsive payment system that benefits both government agencies and the businesses that serve them.

Anyone interested in taking the survey can go to https://shorturl.at/9MCEM.

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